PURPOSE:

The purpose of this memorandum is to request City Council approval of the proposed resolution which would adopt a three year Memorandum of Understanding (MOU) between the City and the Burbank Fire Fighters � Chief Officers� Unit (BFF-COU) and amend the Fiscal Year (FY) 2006 - 07 budget.

BACKGROUND:

Beginning in September 2006, the City began the FY 2006 - 07 negotiations with the Burbank Fire Fighters � Chief Officers� Unit (BFF �COU).  The Burbank Fire Fighters 2006-09 Memorandum of Understanding was adopted on October 10, 2006 and all other recognized bargaining groups are currently in the midst of multiple year agreements.  As such, this final contract completes the Union negotiations for FY 2006-07. 

For many years it has been the City�s policy to look at four basic cornerstones when considering compensation issues for its employees:

• The condition of the economy as reflected by the Consumer Price Index (CPI) for the Los Angeles-Riverside-Orange County Urban Wage Earners and Clerical Workers from April to April 2005.  This year, that CPI was 4.50%.

• The capacity in the City�s approved budget.

• Commitment to pay for performance is an on-going philosophy for the City.  In order to recruit and maintain qualified employees to serve the needs of the community and citizens it is vital that the City maintain this commitment even in the face of fiscal adversity.

• Equity in the marketplace as determined by market survey is the fourth criteria the City utilizes in setting compensation for employees.  Although the parties did not specifically conduct a BFF-COU survey, the survey that was completed for the Burbank Fire Fighters (BFF) was considered in order to avoid compaction and provide an idea of the marketplace for fire personnel.

ANALYSIS & CONCLUSION:

It is within the difficult balance between fiscal responsibility and the City�s commitment to maintain competitive wages in order to retain and promote the most qualified employees that this agreement was reached.  As was previously stated, although a market survey was not used as the basis for determining the compensation package for the BFF-COU, both a four-city and twelve-city survey was completed for the BFF.  This survey, which indicated that Burbank�s salary was 0.62 % to 6.65% below the average salaries in the comparable cities, was utilized for the BFF-COU in order to avoid any compaction issues.  In addition to the survey data, both the current CPI and the amount forecasted in the FY 2006-07 budget was utilized to develop this years BFF-COU compensation package. The package is detailed as follows:

 Three Year Agreement � Total Cost of 15.534%

Year 1 � 8.143% Annual Cost

• 4.5% salary increase

• Increase medical coverage equating to approximately 75% of PORAC (.493%)

• $15/month match to Post Employment Health Plan (PEHP) (.098%)

• $15/month match to a 401(a) plan (.098%)

• Increase educational incentives (.234%):

                        AA or 60 units increased from $105 to $115 per month

                        BA or BS increased from $151 to $200 per month

                        MA or MS increased from $251 to $300 per month

• 3% for obtaining the California Incident Command Certification (2.72%)

• 72 hour vacation buy back

Year 2 � 4.285% Annual Cost

• 3.5% salary increase

• Increase medical coverage equating to approximately 75% of PORAC (.526%)

• Dental insurance (.259%)

Based on a $118 per month per employee premium the City would pay $42 per employee and the employee would be responsible for the remainder of the premium up to $76 per month.  The actual amount will depend on the premium that is negotiated.

Year 3 � 3.106% Annual Cost

• 3% salary increase

• Increase medical coverage equating to approximately 75% of PORAC (.106%)

Beyond the salary and benefits, the City and the BFF-COU also agreed to a number of proposals that demonstrated their leadership, and interest in stepping up to serve as a role model to the BFF, such as 24/7 availability to the Fire Chief and changes in overtime assignments which would benefit the Department. 

FISCAL IMPACT:

The total cost for this package is 15.534% over the three year period from July 1, 2006 through June 30, 2009.  The total package cost over the three year period is $176,931.

The first year impact of 8.143% is a total cost to the General Fund of $90,159.  Salary increases and equity adjustments were anticipated in the FY 2006 � 07 budget preparation. However, the funds were not appropriated at the time of budget adoption.  As such, budget amendments are required to appropriate the necessary funds from the Un-appropriated Fund Balance.

RECOMMENDATION:

Staff recommends City Council adoption of the proposed resolution approving the Memorandum of Understanding with the Burbank Fire Fighters - Chief Officers� Unit for Fiscal Year 2006 � 2009 and amending the Fiscal Year 2006 � 07 budget.

Respectfully submitted,

Judie Sarquiz